Payday loans while being quite popular amongst people looking at the quick inflow of funds to meet any financial crisis. However, there are quite a few people who criticize these too, calling them the worst forms of funding that you could have. However, these payday loans obviously have their own advantages and disadvantages, they are often the last resort for people looking for quick funds to meet any financial emergency. These short-term advances are meant to be repaid within a few weeks time, at most on your next payday. Moreover, they can be pretty expensive too. Therefore, as advised by the experts, these are to be used only during emergencies and that too when you are sure about their repayments.
Hence, there are other options that are available which should be considered before availing the payday loans. Let us take a look at some of these other types of loans that are available to you:
Personal Loans: There are both secured and unsecured personal loan that are offered by the banks that can be availed for a longer repayment period and at lower interest rates. However, you need to have a good credit history and enough time at hand to avail these loans as the banks have their own procedures to be followed before the loan application is approved.
Credit Unions: These can be helpful even if you have a less than perfect credit report and often provide the loans at rates lower than those of the bank loans. However, these have restrictions in terms of membership and you should be eligible to become a member before you can think of availing a loan from these credit unions. However, the benefits they offer are quite a lot and hence it is worthwhile to explore the ones where you could become a member.
Financial Institutions: There are some financial institutions that exist specifically as lending organizations and have more lenient terms than the conventional banks. However, they still have certain parameters w.r.t. to income; expenditure etc. that needs to be met and their interest rates are often higher than those of the banks. However, these loans may still prove to be cheaper than the payday loans.
Loans against insurance policy: if you have a life insurance policy of a good accrued value then you may be able to take a loan against it at reasonable rates.
Salary Advance: If you are an employee in any organization, you could check with the Finance or HR departments regarding the policy on advance against your salary. This can be a good option as most of the time this is interest free money and at times, you can pay even it back in a few installments.
Cash Advance from credit cards: in case of an emergency you can even withdraw cash from your credit card. Though, there are fees and charges attached to it, it can still work out to be cheaper than a payday loan and can be availed without any documentation.
Borrowing from family: Another resort could be to ask your friend or family to help you out. This may be a bit embarrassing for most people, but if the situation demands it and your credit scores are worse than average, this is worth a try to avoid a risky and expensive proposition.
However, in the case, none of these work and you find that payday bad credit loans seem like the only options possible, it is best to try the online vendors. These not only offer competitive rates but also have very fast approval process. This will help you get the money almost instantaneously and that too at competitive rates compared to the market.